Insurance company MAPFRE Middlesea plc has announced the publication of its interim financial statements for the first six months of 2023, reporting a profit before tax of €10.75 million for the period, as compared to €2.97 million for the same period last year.

The profits for the first six months of 2022 were originally stated as €11.76 million. However, the group’s shift to new accounting standards required it to go back and revise its financial results for the previous year.

The large difference seen following the adoption of new accounting standards was attributed to a bond portfolio that was hedged against by MAPFRE MSV Life’s Term Business, and which experienced fair value losses due to the increase in interest yields.

It noted that such a loss “is not repeatable as the bond portfolio was subsequently disposed of”.

Turning to the half year just ended, MAPFRE Middlesea reported that its non-life insurance business saw “strong growth” in premium written “from the already improving levels of June 2022”.

“Claim frequency in the motor line of business saw an improvement compared to 2022, with average cost remaining stable.”

The results also show an overall improvement in insurance and investment income.

In the life business, conducted through MAPFRE MSV Life plc, insurance and investment sale remained subdued in the first six months of the year.

The company explained that it “had to compete with high coupon government and corporate bond issues and other financial products in the local market offering a high interest return.”

On the other hand, investment returns improved when compared to the negative return experienced in 2022.

During the first six months of 2023, the group noted that general business gross premium written increased by 13.1 per cent, while long term gross business written registered a downward movement of 34.4 per cent.

MAPFRE Middlesea concluded by saying it is looking at the second half of 2023 “with cautious optimism” as it navigates an economic environment influenced by the ongoing effects of the Ukraine war, high inflation, and an increasing interest rate backdrop.